Audit 369104

Federal Agency - United States Department of Treasury Federal Programs - COVID-19 Coronavirus State and Local Fiscal Recovery Funds (21.027) Federal Award Years - 2021 State Agency - Not applicable Reference - 2024-003 Procurement - Noncompliance Criteria - Management is responsible for procuring engineering services. CFR §1780.39 (b) states applicants should negotiate for procurement of professional services, whereby competitor’s qualifications are evaluated and the most qualified competitor is selected, subject to negotiations of fair and reasonable compensation. CFR §1780.39(b)(l)(i) states applicants shall publicly announce all requirements for engineering and architectural services. Condition - The engineering services for the construction of water district #6 was not procured in accordance with CFR §1780.39. Cause - The Town contracted with an engineering firm they used in the past. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Effect of Condition - The Town may not have received the fairest and most reasonable pricing for engineering services or selected the most qualified firm. Repeat Finding - This is a repeat finding of item 2023-003 as reported for the year ended December 31, 2023. Recommendation - We recommend that the Town procure these services in the future. Questioned Costs - None. Perspective - This was the only program tested for procurement. As such, there may be more procurement issues. View’s of Responsible Officials and Planned Corrective Actions - Management will procure engineering services in the future.